Crypto Markets Feel The Pain Of War

By Jonas Luethy, Sales Trader at the UK based digital asset broker GlobalBlock

Bitcoin BTC/USD took a sharp fall to lows of $34,200 due to uncertainty in the world economy. The crypto market has followed traditional financial markets as the situation in Ukraine escalates to war. Altcoins also took a heavy hit, with most recording losses in excess of 10%. $200 billion was wiped from the crypto market cap as a result. Some have speculated that Russia might use Bitcoin to evade Western sanctions. This could be very negative for the general perception of cryptocurrency as it would give Western governments more legitimacy to crack down on digital assets.

Canadian Prime Minister Justin Trudeau has ended the national state of emergency which saw an unprecedented crackdown on bank accounts and an attempt at cracking down on crypto wallets. These draconian measures only highlighted the importance of Bitcoin and cryptocurrencies, and it comes as no shock that people are starting to see decentralised solutions as a safe haven from government intervention.